Morgan Stanley expects the heavy truck industry to remain in a moderate upward cycle next year and the following year, supporting the company's profit growth.
According to the Securities Times app, Morgan Stanley released a research report stating a downgrade on Weichai Power (02338) target price, from HK$18 to HK$16, with a target price of 10 times forecasted PE ratio for next year, maintaining a 'shareholding' rating. The bank expects the heavy truck industry to remain in a moderate upward cycle next year and the following year, supporting the company's profit growth.
The bank indicated a 2% to 3% decrease in revenue forecast for Weichai Power from this year to 2026, reflecting lower-than-expected sales of heavy trucks in the second half of this year. The bank expects the company's gross margin to modestly expand from this year to 2026, with a 6% decrease in net income forecast for this year, and 1% and 4% downward revisions for next year and the following year respectively.
